don, thanks for the post an interesting article, but the research did not factor in oversupply and decreased demand. The break in the CRB into a new low should not be viewed lightly, it will be followed by additional new lows and that means, if nothing else disinfllation, and possibly to some extent deflation. Those guy maybe waiting for their "ship" to come home, but I am afraid they are waiting for the wrong ship.
The most telling passage in the article is: "We saw
the same sort of thing in silver, well before Warren Buffett's position was
announced. I suspect that we've probably heard the last of the really bad
news about the yen."
Sure, that was when silver broke $7/oz, have you looked at it recently? Buffet pulled a "Vinik" on the market and probably unloaded it, or Buffet's boys are stuck with a very large loss position in silver right now, guess which one it is? I would wager it is the former.
I think those guys are wrong, very simple. By the way, when was the last time Barron's interviewed anyone at the correct turning point?
Zeev |
